Buy Merck; target Rs 725: Firstcall Research
Firstcall Research is bullish on Merck and has recommended buy rating on the stock with a target price of Rs 725 in its June 13, 2013 research report.
June 17, 2013 / 13:19 IST
Firstcall Research report on Merck
"Merck's net profit jumps to Rs. 139.76 million against Rs.123.93 million in the corresponding quarter ending of previous year, an increase of 12.77 percent. Revenue for the quarter rose 32.65 percent to Rs.1820.37 million from Rs.1372.28 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs.8.42 a share during the quarter, registering 12.77 percent increase over previous year period. Profit before interest, depreciation and tax is Rs.229.47 millions as against Rs.206.31 millions in the corresponding period of the previous year.""Outlook and Conclusion: At the current market price of Rs.659.00, the stock P/E ratio is at 12.39 x CY13E and 11.51 x CY14E respectively. Earning per share (EPS) of the company for the earnings for CY13E and CY14E is seen at Rs.53.18 and Rs.57.28 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 13 percent and 14 percent over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 5.99 x for CY13E and 4.99 x for CY14E. Price to Book Value of the stock is expected to be at 1.91 x and 1.64 x respectively for CY13E and CY14E. We expect that the company surplus scenario is likely to continue for the next three years, will keep its growth story in the coming quarters also. We recommend 'BUY' in this particular scrip with a target price of Rs 725 for Medium term investment," says Firstcall Research report. Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. 
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